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Donald trump has entered a post of the President of the United States: what is the future for Apple?

21.01.2017 Erika J. Wells 0 Comments

Until now Apple has had an uneasy relationship with President-elect Donald trump. At the time, trump has called on its supporters to boycott the iPhone for the fact that the manufacturer refused to unlock the phone arrow from San Bernardino at the request of the FBI.

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Donald trump has entered a post of the President of the United States: what is the future for Apple?

Now that trump has officially entered a post of the President of the United States, a new era has begun for the whole country and including for Apple, which, however, could benefit from some changes in the financial policy of the new administration. And Apple CEO Tim cook, who once held a fundraiser in support of Hillary Clinton during the election campaign, has made it clear that he is ready for dialogue with trump. After participating in the so-called the IT summit in December, cook told his staff: “I Personally never felt on the margins of success.”

Experts ITtube decided to elaborate on the problems, which, apparently, will have to decide the leadership of Apple in Donald trump.

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Donald trump has entered a post of the President of the United States: what is the future for Apple?

During his election campaign trump tried to put pressure on Apple to change its stance on encryption iPhone after the incident in San Bernardino. Apple refused to help the FBI to unlock iPhone one of the shooters, and trump called for a boycott of Apple products. Now the US Administration can re-start the pressure on Apple on the encryption issue, as Senator Jeff sessions selected by trump for attorney General, made to add a “loophole” in mobile devices to authorities. Sessions has actively supported the FBI in her lawsuit against Apple and probably will have the right, based on the notorious All Writs Act (the law of “all claims and the courts,” from 1789) to punish companies who refuse to help law enforcement bodies to weaken encryption.

On the other hand trump announced that he was going to impose a tax up to 45% on the import of goods in the United States for American companies that manufacture their products in China, although his team, as they say, discusses the import duty to 10%. In China the import duty averages around 3%. As you know, the Assembly of Apple devices including the iPhone, is done in China, so Apple will be stronger than others affected by the new tax. It is clear that the price of Apple products will rise. Trump will be able to introduce such similar tariffs because the President has such authority, if it turns out that the countries involved in unfair trade practices this accusation trump has leveled against China.

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Donald trump has entered a post of the President of the United States: what is the future for Apple?

Trump said that it would impose import duties against China to encourage American companies to manufacture more of its products in the United States. So, depending on how you decide to act in the administration of the trump, it is likely that Apple will be forced to open factories in the USA. It was reported that the cupertinos have asked Foxconn and Pegatron to consider the possibility of moving the production of iPhone in the States. Although this is also likely to lead to higher prices for “Apple” smartphones.

According to trump, he believes that Tim cook “opened eyes” to produce iPhone in the United States. This statement he made this week, adding: “I think he would like to do something significant here.”

However, not all so is bad with taxes for Apple. Trump promised to reduce the corporate income tax, which must pay large corporations to 15% of the profits from today’s 35%. Apple store in the US much more cash, if a large reduction in corporate tax will come into force, because it was listed as the most profitable company in the Fortune 500 in the last two years. Apple’s net profit in the 2016 financial year (ended September 24) reached $of 45.69 billion.

Donald trump has entered a post of the President of the United States: what is the future for Apple?

Another aspect to taxes, where Apple can win this so-called tax holiday proposal by trump to allow corporations to return funds they hold offshore, with a single tax rate of 10% instead of the current 35%.

In the accounts of the subsidiaries of Apple outside the United States hold over $200 billion, and Tim cook has expressed interest in the return of foreign assets in the country. This money can be invested in creating jobs in the US, used to buy other companies, or, more likely, for the redemption of own shares and dividend payments to shareholders.

#apple#iPhone#Tim cook

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